1、Fundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementChapter 1Entrepreneurship andSetting up a BusinessFundamentals of ManagementEnglish Course forBrainstorming Please read the passage on Page 2 and fill in the following chart.What are the advantages of a freelance
2、r-supported business model like Uber?Any disadvantages?Please fill in the chart below.Advantages:Disadvantages:UberFundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementText AThe Founders DilemmaFundamentals of ManagementEnglish Course forText AThe Founders Dilemma
3、Successful CEO-cum-founders are rare.Founders dont willing to stepdown easily.The manner in which founders tackle their first leadership transition often breaks young enterprises.The transitions take place relatively smoothly if founders are honest about their motives for getting into business.Funda
4、mentals of ManagementEnglish Course forText AThe Founders Dilemma Founders often make decisions that conflict with the wealth-maximization principle.Founders often chose some options that are conflicted with the desire for money.Fundamentals of ManagementEnglish Course forText AThe Founders Dilemma
5、Founders choices are straightforward:Do they want to be rich or king?Few have been both.Key factor:The drive to create and lead an organizationFINANCIAL GAINSWELL BELOW POTENTIALCLOSE TO POTENTIALCONTROL OVER COMPANYLITTLEFailureRichCOMPLETEKingExceptionFundamentals of ManagementEnglish Course forIn
6、side the Founders Mind Founders are usually convinced that only they can lead their start-ups to success.Build the business according to the founders vision Develop close relationships with first employees Create the organizational cultureFundamentals of ManagementEnglish Course forInside the Founde
7、rs Mind Founders attachment,overconfidence,and naivety may be necessary to get new ventures up and running.Entrepreneurs become emotionally attached to their new ventures.Low salaries they pay themselves.Entrepreneurs are overconfident about their prospects and nave about the problems they will face
8、.But these emotions later create problems.Fundamentals of ManagementEnglish Course forGrowing Pains Founders have to give up total control over the enterprise.Founders financial resources,ability and passion arent enough to capitalize on the opportunities before them.Outside directors will join the
9、companys board.Founders job as CEO is at risk.Founders are eager to deliver results to consolidate the position of CEO.Fundamentals of ManagementEnglish Course forGrowing Pains The need for a change at the top becomes even greater when a founder has delivered results.When founders celebrate the ship
10、ping of the first products,they will face a different set of business challenges.The dramatic broadening of the skills that the CEO needs at this stage stretches most founders abilities beyond their limits.Fundamentals of ManagementEnglish Course forGrowing Pains When founder-CEOs need outside funds
11、 and new management skills,they less qualified to lead the company and become vulnerable.Investors often use that moment to force founders to step down.Outsiders will gain control of the board through the stormy transition.The founder refused to accept the need for a changeFundamentals of Management
12、English Course forGrowing Pains Founders emotional strengths become liabilities at this stage.Their resistance triggers traumatic leadership transitions within young companies.Fundamentals of ManagementEnglish Course forTime to Choose Choosing money:A founder who gives up more equity to attract inve
13、stors builds a more valuable company than one who parts with lessand ends up with a more valuable slice,too.“Rich”versus“King”Trade-offsFundamentals of ManagementEnglish Course forTime to Choose“Rich”versus“King”“Rich”options enable the company to become more valuable but sideline the founder by tak
14、ing away the CEO position and control over major decisions.“King”choices allow the founder to retain control of decision making by staying CEO and maintaining control over the boardbut often only by building a less valuable company.Key factor:How well each decision fits with their reason for startin
15、g the company.Fundamentals of ManagementEnglish Course forTime to Choose Most founder-CEOs start out by wanting both wealth and power However,they will figure out which is more important to them Tackling transitions can be handed off easilyFundamentals of ManagementEnglish Course forKeeping Founders
16、 on Board Ideally,a board should keep the founder involved often as a board member,helping the new CEO succeed.Wrong approach Some boards try to relegate the founder to a cosmetic role,aiming to manage the founders negative influence,but that can backfire.Fundamentals of ManagementEnglish Course for
17、Keeping Founders on Board Effective approach Boards can sometimes help founders find new roles and offer founders the luxury of focusing on that area.Boards can encourage founders to take on new roles in their companies that will enable them to regain control.Fundamentals of ManagementEnglish Course
18、 forTime to Choose Choosing power:Founders motivated by control will make decisions that enable them to lead the business at the expense of increasing its value.Influence factor:the perception of a ventures potential.Founders often make different decisions when they believe their start-ups have the
19、potential to grow into extremely valuable companies.Fundamentals of ManagementEnglish Course forTime to Choose“Rich”versus“King”Rich-or-king choices can also crop up in established companies,heads of not-for-profit organizations.Would-be entrepreneurs can also apply this framework to judge the kind
20、of ideas they should pursue.Fundamentals of ManagementEnglish Course forTime to Choose Choosing between money and power allows entrepreneurs to come to grips with what success means to them.The paramount thing is to realize why they are turning entrepreneur.Fundamentals of ManagementEnglish Course f
21、or Creative Destruction Creative destruction can be described as the dismantling of long-standing practices in order to make way for innovation.Creative destruction was first coined by Austrian economist Joseph Schumpeter in 1942.Schumpeter describes creative destruction as innovations in the manufa
22、cturing process that increase productivity,but the term has been adopted for use in many other contexts.Related Theories Fundamentals of ManagementEnglish Course for Theory of Need of Achievement The need for achievement theory was propounded by McClelland.His assumption is that the desire of high a
23、chievements obtaining specific achievements,making the best performance,touching the heights of excellence,developed entrepreneurial tendencies in the individuals.But,for that,the entrepreneur should have adequate capacity of imaginations,thinking and developing new combinations.Related Theories Fun
24、damentals of ManagementEnglish Course for Entrepreneurial Group Theory This theory was propounded by Frank W.Young.The theory is based on the assumption that expansion of entrepreneurial activities is possible only by entrepreneurial groups.Because they have specialties is in the groups,and capacity
25、 to react.Related Theories Fundamentals of ManagementEnglish Course for Process of Stage Theory Within accepted theory,process or stage theory has been developed by Venkat Rao.His assumption is that entrepreneurship development a process of five following stages:(1)Simulation(2)Identification of Ent
26、repreneurial Abilities and Capacities in the Society(3)Development and Expansion of Entrepreneurs(4)Promotion(5)Follow UpRelated Theories Fundamentals of ManagementEnglish Course forText BThree lessons for entrepreneurs from insideAlibabas Taobao University Please read Text B and finish the group work.Fundamentals of ManagementEnglish Course forText CHow The Best Entrepreneurs Succeed Please read Text C and finish the discussion.
